How On-Site Solar Can Help Your Building Meet BERDO Compliance
The Building Emissions Reduction and Disclosure Ordinance (BERDO) is a local law designed to reduce air pollution and greenhouse gas emissions generated by large buildings in Boston. The first emissions compliance deadlines are already here, and the penalties for falling short are steep.
The good news? On-site solar is one of the most straightforward and financially attractive paths to compliance.
Here's what you need to know.
What Is BERDO, and Does It Apply to Your Building?
BERDO is a Boston city ordinance designed to reduce greenhouse gas emissions from the city's largest buildings, with a long-term goal of net-zero emissions across all covered properties by 2050. If your building, whether it’s new or existing, falls into any of the following categories, you are subject to BERDO:
Residential buildings with 15 or more units
Non-residential buildings that are 20,000 square feet or larger
Any tax parcel where multiple buildings together total at least 20,000 square feet
Beyond emissions limits, covered buildings are also required to report their energy and water consumption annually. Verification by a third party is required starting in 2026 for 2025 data.
Compliance Requirements and Deadlines
Building size determines when compliance is required and larger buildings already have reporting requirements.
Compliance Year 2025
Non-residential ≥ 35,000 SF
Residential with 35+ units
Compliance Year 2030
Non-residential 20,000–34,999 SF
Residential with 15–34 units
Once a building has hit its compliance year, the owner is required to:
Report your building’s annual energy and water use every year by May 15
Verify reported data with a third-party qualified energy professional every verification year
Reduce emissions produced by your building(s) to comply with annual emissions limits (this is where solar can help)
If you are unsure of your compliance requirements, you can confirm by checking the city’s BERDO Covered Buildings List. The city also provides a more in-depth intro to reporting requirements here.
The Cost of Non-Compliance
The financial penalties for missing BERDO's requirements are significant — and they accrue daily.
For failing to meet emissions standards:
Up to $1,000/day (~$365,000/year) for larger buildings (non-residential ≥ 35,000 SF or residential with 35+ units)
Up to $300/day (~$109,500/year) for smaller covered buildings
As emissions standards tighten through 2050, the gap between a building's current emissions profile and its required limit will only grow without proactive investment. Organizations that are not working to reduce their emissions could face steep penalties.
Flexible Onsite Solar Options
BERDO recognizes solar as a compliance mechanism and the rules are notably flexible.
Under the ordinance, electricity and generation credits from on-site solar are eligible for compliance regardless of who owns the solar system. This means building owners can offset their emissions by directly owning a system or through a third-party ownership model like a Power Purchase Agreement. While direct ownership typically provides the highest financial benefit to owners, it also requires significant upfront investment.
Under a PPA, a third party owns and operates the solar system on your property, and you purchase the electricity at a contracted rate — typically below your current utility rate. PPAs allow building owners to save on their electricity costs and increase their BERDO compliance, all at little or no-cost. Importantly, a PPA that qualifies at the time of execution remains valid for compliance for the full contract term, including any extensions. This gives building owners long-term compliance certainty, often 15–25 years, without having to renegotiate or requalify.
Why On-Site Solar Is One of the Best BERDO Strategies
Compared to other compliance pathways — such as purchasing offsite RECs or investing in deep electrification retrofits — on-site solar offers a unique combination of benefits:
Financial savings
Solar reduces your electricity costs from day one, and BERDO avoided-cost penalties can be factored directly into the financial case for going solar. For a large building facing $1,000/day in potential fines, the compliance value alone can justify the investment.
Simplicity
On-site generation that you or your tenant directly consumes is among the easiest compliance mechanisms to document and report. There's no complex REC tracking or third-party verification of procurement chains.
Long-term certainty
A qualifying PPA locks in your compliance mechanism for the life of the contract, protecting you against regulatory tightening or rising REC prices. Additionally, ownership can provide your building with clean energy and compliance support for upwards of 25 years.
Taking the Next Step
If your Boston building is subject to BERDO, now is the time to assess your options. A solar feasibility study can quickly determine how much of your emissions obligation on-site solar can address, and what the financial picture looks like under different ownership models. Further, we can model your non-compliance financial penalties so you can compare the full picture apples-to-apples.
The 2025 compliance year is already underway. Buildings with the largest footprints are on the clock, and a solar installation takes time to design, permit, and energize. The earlier you act, the more options you have.
Ready to explore whether on-site solar is right for your building? Contact us to get started with a no-obligation assessment.
This post is based on publicly available BERDO ordinance requirements and City of Boston guidance. Building owners should consult with a qualified energy or legal advisor for compliance decisions specific to their property.